A charitable gift annuity is a contract where you agree to give money or other assets to Amazing Discoveries in return for a fixed annual payment for your life or for a set amount of years. After you pass away, whatever is left of your donation is used by Amazing Discoveries to further the ministry.
The payments do not have to be made annually. You can request to be paid monthly, quarterly or semi-annually, whichever you prefer. The payment amounts are set by the government and are based on your age and life expectancy. The older you are, the higher the percentage you will receive each year.
If you select payments for life, they can be made for the duration of your life or for you and your spouse’s lives (two lives), so whoever lives the longest will continue to receive a payment. The payments are paid regardless of how much you donated or how long you live.
Part of each payment will be tax free income. The remaining amount will either be taxed as ordinary income or capital gains.
Payments from the annuity can start immediately. However, individuals that do not need the income stream, might want to delay the payments until they are fully retired. This will allow for a higher percentage to be paid each year.
The benefits of a Charitable Gift Annuity are:
current fixed income for life
possible tax free income
an Income Tax deduction
an Estate Tax deduction
a Capital Gains deduction (if any), and
the satisfaction of advancing God’s work.
A Charitable Gift Annuity is great for individuals who have assets or cash that are not producing income. Those assets can be transferred into an annuity and converted to fixed income for life. Charitable Gift Annuities require a minimum of $10,000. If you are interested in setting up a Charitable Gift Annuity please click here to contact us now.